IL&FS transfers Pune Sholapur Road asset to Invit at enterprise value of ₹2,000 cr

Infrastructure Leasing & Financial Services (IL&FS) in a statement said, as part its debt resolution strategy, it has completed transfer of its fifth road asset — Pune Sholapur Road Development Company Limited (PSRDCL) — to Roadstar Infra Investment Trust (Invit).

“With this transfer, secured lenders of this asset will get full recovery of their dues under the Invit structure while the group lenders will be issued Invit units as settlements for their loans,” IL&FS said in the statement.

The company plans to transfer 10 road assets under the Invit structure as part its debt resolution strategy.

IL&FS has already transferred its four road assets to Invit structure as part its debt resolution strategy. The four road assets that have been already transferred are Moradabad Bareilly Expressway Limited (MBEL); Sikar Bikaner Highway Limited (SBHL); Hazaribagh Ranchi Expressway Limited (HREL) and Thiruvananthapuram Road Development Company Limited (TRDCL), the company said.

The current total enterprise value of the Invit, with these five assets, is around 7,300 crore.

The IL&FS board, as part of its strategy to resolve 99,000 crore debt (as of October 2018), had opted to use the Infra Investment Trust (Invit) route to resolve nearly 15,000 crore debt under its road assets.

As per the January filings by the group, a total of 10 road assets are to be transferred under the Invit structure, in phases, with only five road assets transferred till date.

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